US OPEN: Chinese e-commerce stocks under pressure from PDD Holdings earnings ❗

• Wall Street in mixed mood at start of session 
• PDD Holdings falls 23% on worse-than-expected quarterly results 
• NASA puts pressure on Boeing shares

U.S. markets open Monday's cash session in mixed sentiment. As of 5 minutes after the opening, Wall Street's Nasdaq is holding near Monday's closing zones, while the S&P500 is adding 0.18%. The leader of the gains, however, is now the Russell 2000, which is adding 0.52%. Investor attention is now focused on the results of PDD Holdings (PDD.US), whose shares are losing more than 23% following the release of quarterly results. 

Current volatility observed on Wall Street. Source: xStation 

US100

The Nasdaq-100 index, represented by the US100 contract is trading today near Monday's closing levels. The instrument broke out above the key resistance zone, which was the 50-day exponential moving average (blue curve on the chart) and the 19,740-point zone, where the previous support ran, which was then set by the main limit of the downtrend. It is the maintenance of this zone in the medium term that could be an important element defining the possible maintenance of a sustained uptrend. In the medium term, on the other hand, an important resistance point may be the psychological zone near 20,000 points.

Source: xStation 5

Corporate news

The shares of PDD Holdings (PDD.US), which owns, among other things, the Temu trading platform, lost nearly 23% at the opening of Monday's cash session on Wall Street following the release of lower-than-expected second-quarter financial results and comments suggesting that the company's profitability would also remain under pressure later in the year. Other Chinese e-commerce companies, including Alibaba (BABA.US) and JD.com (JD.US), also lost ground in reaction to the results. 

SECOND QUARTER RESULTS

• Revenue of 97.06 billion yuan, estimated at 99.99 billion yuan 
• Revenue from online marketing and other services 49.12 billion yuan, estimated 50.5 billion yuan
• Revenue from transaction services 47.94 billion yuan, estimated 50.02 billion yuan
• Adjusted profit on American depository receipts 23.24 yuan, estimated 20.52 yuan
• Adjusted net profit 34.43 billion yuan, estimated 30.1 billion yuan
• Total operating expenses 30.80 billion yuan, estimated 33.1 billion yuan
• Sales and marketing expenses 26.05 billion yuan, estimated 27.9 billion yuan
• Research and development expenses 2.91 billion yuan, estimated 3.49 billion yuan

KEY COMMENTS 

• “Looking ahead, revenue growth will inevitably face pressure due to increased competition and external challenges,” said Jun Liu, vice president of finance.

•  “Profitability is also likely to be affected as we continue to strongly invest in the company's growth.”

Boeing (BA.US) shares are losing more than 1% after NASA announced Saturday that it will ask SpaceX to bring two astronauts from the International Space Station, instead of using the Boeing company's Starliner. During its last mission in June of this year, the Stariliner created had problems with helium leaks, and 5 of its 28 thrusters were found to have failed in orbit.  

SolarEdge Technologies (SEDG.US) shares are gaining more than 6% after the company announced that CEO Zvi Lando has stepped down with immediate effect. Ronen Faier, who previously served as CFO, was named interim CEO.

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